What is the Cost Per Click (CPC)?
A fee that a website publisher charges to serve your display ads on its site. Instead of paying for your ads to simply show up, you only pay when the audience interacts with them. Google is a major publisher of cost-per-click (CPC) ads, and it contracts with other publishers to distribute them to other sites, too.
Example
For example, let’s say a company runs a Google Ads campaign for a keyword related to their product. They bid $1.50 for each click on their ad. During the campaign, their ad receives 100 clicks. The Cost Per Click would be calculated as follows:
CPC = Total Advertising Spend / Number of Clicks
CPC = ($1.50 * 100) / 100
CPC = $1.50 per click
So, the Cost Per Click for this campaign is $1.50. This means that the company paid an average of $1.50 for each click on their ad. CPC is an important metric for advertisers to monitor as it directly impacts their advertising costs and return on investment (ROI) from their campaigns.